FLEMINGTON — Borough Council will not include the western half of the old Agway site and Steve’s Food Store in its redevelopment study.

This decision was made on March 28, partly out of respect for an approved plan for one site and a viable business in operation on the other lot, and partly to avoid a lawsuit. But Mayor Erica Edwards said that a study of the abandoned Agway site east of North Main Street “may enlighten us to some thoughts of expanded development and we can discuss that when we get there.”

Council had asked the Planning Board to study the 3.5-acre eastern part of the old Agway property, which contains the old Agway store, to see if it should be declared “an area in need of redevelopment.” The Planning Board replied by asking for authorization to study both parts, plus the lot containing Steve’s Food Store.

But some councilmen wanted to meet with the owners of Nilkanth LLC, which owns Steve’s store on one lot and has a borough-approved plan to replace the old feed mill with three retail buildings on the other lot.

The mayor, two councilmen and the borough’s planner and redevelopment attorney met with the developer.

On March 28 Councilman Phil Greiner reported that the Nilkanth representatives “didn’t see anything good coming out of those sites being now subjected to a study and possibly grouped up with a larger deal.”

Council President Phil Velella said, “They have every expectation to move forward — and they do have a few years to do that based on the law — and follow through on those plans.”

Velella said the owners “felt if they were agreeable to this, it would leave the door open for the town to possibly justify taking that property from them.” He said that if the borough did include the Nilkanth properties in the study “they would fight this pretty aggressively… they alluded they would take us to court.”

Edwards said, “We have never indicated that we are inclined (to take the land by right of eminent domain)” but she asked redevelopment attorney Rob Beckelman, “just to clarify,” whether Nilkanth’s Planning Board approval for its retail redevelopment would make that land immune to eminent domain.

He said the project is protected against zoning changes wrought by a redevelopment plan, but would not be immune to eminent domain.

Greiner said, “I understand the Planning Board’s desire” to expand the study area, but it doesn’t seem fair to Nilkanth to cloud their project after all the time and effort they had put into it.

Councilman Brian Swingle said, “I agree… we’re a little late to the game on this one. The horse has already left the barn.”

Councilwoman Dorothy Fine said, “I have no desire to expand that study.” And that is the answer that will be conveyed to the Planning Board.

If council does declare the eastern part of the Agway property to be an area in need of redevelopment, it can take over redevelopment rights to the property as it did with the Union Hotel. The next step would be to decide what the borough would like to see on that site and then invite redevelopers to submit proposals. The owner of the Agway property is on the tax rolls as Global Ag Associates Inc. and the land is encumbered by tax liens.